The state of Florida welcomed Phillips Edison – ARC Grocery Center REIT II (Grocery Center REIT II) this week with the non-traded REIT’s acquisition of two grocery-anchored shopping centers. Grocery Center REIT II seeks to acquire neighborhood shopping centers that are grocery-anchored and have a mix of national and regional tenants.
On August 15, 2014 the company purchased Lake Washington Crossing, a shopping center containing 118,698 rentable square feet in Melbourne, Florida. Situated on approximately 13.25 acres of land, the property was purchased for approximately $13.4 million, exclusive of closing costs. Anchored by Publix, a leading grocer, the facility is 84% leased to 26 tenants. With Publix occupying approximately 39,795 square feet, other tenants at Lake Washington Crossing include Sally Beauty, Pizza Hut, KFC, and H&R Block.
Grocery REIT II acquired MetroWest Village in Orlando, Florida on August 20, 2014. The property consists of 106,977 rentable square feet and is located on approximately 11.16 acres of land. Acquired for $18.7 million, the center is 94% leased to 20 tenants, with Publix occupying 48,555 rentable square feet. Other tenants include Marco’s Pizza, Subway, Pet Supermarket, GNC, Anytime Fitness, Weight Watchers and South Beach Tanning.
The properties were purchased with proceeds from the REITs ongoing $2 billion public offering. Co-sponsored by Phillips Edison & Company and AR Capital, LLC the REIT made its first acquisition in March of this year.